Elon Musk Resigns As Tesla Chairman Amid SEC Investigation

The Tesla boss’ tweets about taking the company private have had strong consequences
Elon Musk Resigns As Tesla Chairman Amid SEC Investigation

Elon Musk has been forced to step down from his role as the Chairman of Tesla, amid a US investigation for alleged securities fraud.

Back in August, he tweeted that he had secured funding to take the company private, which caused a massive fluctuation in Tesla share prices. As we reported on Friday, the U.S. Securities and Exchange Commission (SEC) said that Musk has organised no such deal, or even started talking about it. The SEC called the claims “false and misleading.”

“In truth and in fact, Musk had not even discussed, much less confirmed, key deal terms, including price, with any potential funding source,” the regulator added.

Elon Musk Resigns As Tesla Chairman Amid SEC Investigation

Not even senior Tesla employees knew about any attempt to take the company private.

It was expected that Musk would be banned from being a board member of any public company for three years, but the entrepreneur has reached a deal that will allow him to remain as Tesla’s CEO. That means he will still oversee the day-to-day running of the company, but an independent chairperson will be introduced to take charge of the boardroom.

Both Musk and Tesla have been ordered to pay a $20 million (£15 million) fine.

Production and delivery issues surrounding the Model 3 are exacerbating Tesla's problems
Production and delivery issues surrounding the Model 3 are exacerbating…

The move should limit Musk’s power in Tesla somewhat but, given the circumstances, many analysts suggest that he has got off lightly. The report insinuates that after the three-year period, Musk may be allowed to return to his position.

This case could have serious consequences for his positions in SpaceX and PayPal, too. It is the latest event in a year to forget for Musk – he is currently being sued by British cave diver Vern Unsworth, and was criticised recently for smoking marijuana on a podcast with Joe Rogan. Although legal where the video was filmed, Tesla’s shares dropped nine per cent as a result.

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Comments

☆★THEBOOSTEDBRIT★☆

I’ll just leave this here….

09/30/2018 - 08:09 |
118 | 4

You could replace this with ANY VIDEO GAME CREATOR and this would still make sense

09/30/2018 - 14:56 |
8 | 1
trabant 601

It’s something I guess

09/30/2018 - 08:09 |
2 | 1
Shane Koshie

Wonder what all the tesla fanboys are gonna say

09/30/2018 - 08:12 |
14 | 2
☆★THEBOOSTEDBRIT★☆

In reply to by Shane Koshie

“Tesla fanboys……blah blah blah.duh duh duh…la la la…….and I quote: Ur mom gay”

09/30/2018 - 20:25 |
3 | 1

Like what do you expect them to say? Elon will no longer hand assemble every Tesla himself?

10/01/2018 - 09:07 |
0 | 0
Anonymous

In reply to by Anonymous (not verified)

I don’t think this guy even read up on the matter…. Just heard two people talking in the street about it and BS’d an article.

09/30/2018 - 14:07 |
2 | 0
AAA Insurance

ohh shid 😂😂 “”‘elon’”” munsk got trolled hard this time for being such a big bad silly meanie 😎 i guess he cant do the the space thing and the mars thing whhere he brack the falcon the spaceship space rocket falcon 😎😎😎😎😎💯😎😎😀😂 and he essspecialy isnt do bad elcrecltic car thing now hhehe :-P xD

09/30/2018 - 09:10 |
1 | 7

Your cat had a merry dance on your keyboard pal

09/30/2018 - 10:28 |
4 | 0
Kenji (Oldsmobile Fan) (GoldWing Enthusiast) (wheel nut)

In reply to by AAA Insurance

Elon musk got trolled just like a libtard

09/30/2018 - 11:03 |
2 | 3
lukalukic1

He step down as ceo but he is still on top just different position

09/30/2018 - 09:17 |
5 | 1

He doesn’t step down as CEO, he just isn’t the chairman of Tesla anymore

09/30/2018 - 11:12 |
6 | 0
NotARealRoadTest

As much as i admire him for starting Tesla, this was inevitable wirh everything thats happened recently

09/30/2018 - 10:29 |
6 | 2

Elon Musk did not start Tesla. He only facilitated growth in the new company.

09/30/2018 - 22:01 |
5 | 0

One ill placed tweet, one feud with a private person, and one seriosly hazy podcast happened recently. You think this is a justified response?

10/01/2018 - 09:09 |
0 | 0
Bring a Caterham To MARS

Okay but
Who sells Tesla shares for no other reason than Elon Musk smoking weed

09/30/2018 - 10:29 |
6 | 1
Elon Musk Resigns As Tesla Chairman Amid SEC Investigation
BullBar

Watch the share price go into ludicrous mode and not in a good way…………

09/30/2018 - 11:00 |
15 | 0
Alex Shutt/SHUTTMAN

In reply to by BullBar

Is that a tesla joke? I believe it is!

09/30/2018 - 12:23 |
2 | 0

Keeping Musk as CEO will actually help the share price, as it was predicted to drop $140.00 had he been forced out of his CEO position.

09/30/2018 - 19:06 |
0 | 0
Tomislav Celić

[DELETED]

09/30/2018 - 11:23 |
1 | 0